Overview
- SpaceX commenced its first public sale of senior unsecured notes on Monday seeking at least $20 billion under Rule 144A and Regulation S to raise cash from qualified institutional and non-U.S. investors.
- Company filings state net proceeds will be used primarily to repay in full an existing bridge loan, pay related fees and fund general corporate purposes.
- The bonds will be unsecured, rank equally with other unsubordinated debt, and target maturities reported between five and 30 years.
- Rating agencies assigned investment-grade scores to the proposed notes and major banks including Goldman Sachs, Bank of America, Citigroup, JPMorgan Chase and Morgan Stanley began investor outreach.
- The move follows SpaceX’s record IPO and comes as the firm balances heavy spending on Starship, Starlink and AI work against projected cash burn, a large cash balance disclosed in filings, and a sharp one-day drop in SPCX shares.